ETALKS: In the world of major players in the energy industry, where does the independent global energy company Nexen Inc. fit in and what are its main pillars of operation?

Curt Satre: Nexen is a Canadian-based technically oriented exploration and production company with a focused approach to the business. A primary area of interest for us is of course the desert operations and we are the largest producer of oil in Yemen. In Canada, we have been involved in heavy oil production and upgrading since the mid 1960s. We have established ourselves as leaders in Gulf of Mexico operations and participated in one third of the discoveries there in 2005. We are currently developing the Buzzard field, the largest discovery in the UK North Sea in over 10 years. Finally we have been focusing on Coal Bed Methane (CBM) production and have established the first commercial CBM operation in Canada.

ETALKS: How does Nexen create value, not only from a perspective of investment and return but also in particular sustainable development and progress in the worldwide energy market and commitment to the community?

Curt Satre: I appreciate this question. Our success in Yemen has been built on a platform of sustainable development and a commitment to the community. For example, in Yemen we operate the country’s largest oil project and have developed excellent relationships with the government and local communities. Our success and reputation in Yemen has opened doors elsewhere in the Middle East and around the world. To elaborate further, we produce two million barrels of water which serve thesociety. Nexen also works closely with local companies on its projects and henceforth provides new job opportunities. On the other hand Nexen provides schools, medical services, training and education. We have launched an independent scholarship programme where participants are selected by a specially elected committee. To date we are honoured to reveal that every student has graduated successfully from this programme. To sum it up, Nexen Inc. has created a win-win situation.

ETALKS: At the Nexen’s 2006 annual general meeting, the company’s management indicated its unconventional and deepwater growth opportunities that are the envy of many in this industry, what are these?

Curt Satre: The unconventional opportunities are heavy oil, offshore deep drilling and CBM. In a higher oil price environment, technically challenging resources which had been sub-economic, are now recoverable. Those companies with the greatest technical strengths, like Nexen Inc., are at the forefront of these opportunities.

ETALKS: Some reports state that the world has an estimated 40 years of oil and 60 years of natural gas left at current production rates in proven reserves, and much more in probable reserves. To what extent is the world prepared today to deal with this issue and what is Nexen’s theory and future strategy?

Curt Satre: There is no low hanging fruit remaining, and traditional approaches are not going to meet even the current production rates, let alone allowing for growth. New technologies which will increase the recovery rates of reservoirs and access the most difficult reservoirs are one target. As you will appreciate, there is intense competition to find and develop new sources of supply. Barrels from different reservoirs around the world do not have equal value. Their value depends on the cost to find, develop and produce the oil or gas. The question arises, do you have the technology to extract it economically? Do you have the technologies to access the oil and generate attractive returns with oil prices at US$ 40, 50 or 60 per barrel? Our goal is to extract the maximum value from each barrel of oil equivalent, so every dollar of capital we invest generates an attractive return. Changes in crude oil and natural gas prices also affects how much we invest in exploration and development. These are the questions that are at the forefront of whatever we do. On another note, Nexen also supports efforts at conservation and efficient use of the energy we have.

ETALKS: Nexen, originally known as Canadian Occidental Petroleum Ltd. formed in 1971, is listed on the Toronto and New York Stock Exchange and is known for its exploration, development, production and marketing of crude oil and natural gas. What is the role of Nexen’s Dubai location?

Curt Satre: Dubai is in the heart of two thirds of the world’s hydrocarbon resources and is very near to Yemen, our signature producing area. We have worked hard to earn the trust and support of Yemen and our reputation is an asset in this area. We hope that our technology and reputation will allow us to be part of the exciting development in the region.

ETALKS: 2005 was a very successful exploration year for Nexen in the Gulf of Mexico such as your participation in the major discovery of Knotty Head, the deepest well ever drilled in the Gulf reaching a total depth of over 10 kms. What are Nexen’s achievements in the Middle East region?

Curt Satre: We discovered and produced over 1 billion barrels in Yemen and it would be easy to claim that as our greatest achievement in the Middle East region. However, I think that the legacy that will be left in community development and the talented students that have been educated and brought into the company will give Charlie W. Fischer, President and CEO of Nexen Inc., the most satisfaction.

ETALKS: In the long run over the next decade, how can a global player in the energy market continue to create great value for its shareholders considering the current and foreseeable future trends in the oil industry?

Curt Satre: Our goal is to grow long-term value for shareholders. We believe in developing targeted capabilities, which generate opportunities and operations required for longterm success in our ever-evolving industry. Our business is highly competitive and we need to focus on our strengths and develop niche opportunities. Nexen believes that companies that follow sustainable business practices outperform those with narrower priorities. Our goal is to help stakeholders become engaged participants in a continuing consultation process.

ETALKS: A personal question. What is the wisest thing you have ever heard during a business meeting?

Curt Satre: In 1997 we acquired another Canadian company with local staff and operations doubling our size. Amid concern about redundancies, Charlie W. Fischer made it clear that these deals are not to be done to achieve the same with less. He said the deal was to take the combined strengths and make it more. Charlie has continuously inculcated an attitude in the company where people come first. It has developed a commitment and loyalty which is part of what makes Nexen Inc. unique.

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